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Louisiana-Pacific Corporation (LPX - Free Report) came up with solid first-quarter 2017 results buoyed by higher pricing at its Oriented Strand Board or “OSB” division and a 16% volume increase in Siding segment.
The company reported adjusted earnings per share of 33 cents in the first quarter of 2017, beating the Zacks Consensus Estimate of 31 cents by 6.5%. Apart from delivering better-than-expected earnings, the reported number increased significantly from the year-ago profit of 7 cents per share.
Net sales of $610.9 million in the quarter surpassed the Zacks Consensus Estimate of $578 million by 5.7%. Also, net sales increased 21.1% year over year.
Adjusted EBITDA from continuing operations was $112 million in the quarter compared with $52 million in the prior-year quarter. This marks the highest adjusted EBITDA in the last four years.
Segmental Analysis
OSB: Sales at the OSB segment increased 23.7% year over year to $268.4 million.
In the first quarter, adjusted EBITDA was $75.3 million, up a significant 151% year over year.
Sales volumes remained flat year over year, while pricing increased 25%, driving solid operating results.
Siding Segment: The segment manufactures products under two categories — SmartSide siding products and related accessories, and CanExel siding and other related accessories. These products are used for new constructions, repair and remodeling and outdoor structures such as shed. The segment also produces a limited number of OSB products.
This segment’s sales were up 18% to $214 million on a 2% increase in SmartSide average sales prices and 16% rise in volumes.
In this quarter, the Siding segment recorded adjusted EBITDA of $48.5 million, 41% higher from the prior-year quarter.
Engineered Wood Products ("EWP"): The EWP segment makes I-Joists (IJ), laminated veneer lumber (LVL), laminated strand lumber (LSL) and other related products. These products are used in residential and commercial flooring and roofing systems.
Engineered Wood Products sales grew 14.3% year over year to $82.1 million in the quarter. Volumes of IJ increased 11% while that of LVL and LSL were up 2% from the prior-year quarter.
Pricing increased 2% for LVL and LSL and 1% for I-Joists. Adjusted EBITDA was $4.5 million, compared with $0.8 million in first-quarter 2016.
South America: This segment comprises facilities in Chile and Brazil. Segment sales increased 23.9% year over year to $37.8 million.
Volumes improved 23% in Chile for selling imported products and 1% in Brazil because of continued economic recession in the local market. However, on a U.S. dollar basis, pricing was up 4% in Chile and 11% in Brazil.
Adjusted EBITDA of $7.3 million reflected a marginal increase from $7 million in the first quarter of 2016.
Other: Net sales were $8.7 million in the quarter compared with $6.1 million a year ago.
2017 Outlook
The company expects to post solid second-quarter results given higher OSB pricing, continued siding growth, several new product launches and relatively flat raw-material pricing.
Capital expenditures are projected in the $175–$200 million range.
The company expects to start paying cash taxes in 2017. In the second quarter, the company anticipates tax payments just over $90 million. However, the company doesn't plan to pay cash taxes in Canada yet owing to the net operating losses.
Louisiana-Pacific Corporation Price, Consensus and EPS Surprise
Masco Corporation’s (MAS - Free Report) adjusted earnings of 41 cents per share in the first quarter of 2017 surpassed the Zacks Consensus Estimate of 35 cents by 17.1%. Adjusted earnings increased 28.1% year over year.
D.R. Horton, Inc. (DHI - Free Report) exhibited an impressive performance in the second quarter of fiscal 2017, with both earnings and revenues beating the Zacks Consensus Estimate by 1.7% and 5.2%, respectively.
NVR, Inc. (NVR - Free Report) reported first-quarter 2017 earnings of $25.12 per share, surpassing the Zacks Consensus Estimate by 27.3%. The reported figure also increased 59% from the year-ago profit level.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Louisiana-Pacific (LPX) Tops Q1 Earnings & Revenue Estimates
Louisiana-Pacific Corporation (LPX - Free Report) came up with solid first-quarter 2017 results buoyed by higher pricing at its Oriented Strand Board or “OSB” division and a 16% volume increase in Siding segment.
The company reported adjusted earnings per share of 33 cents in the first quarter of 2017, beating the Zacks Consensus Estimate of 31 cents by 6.5%. Apart from delivering better-than-expected earnings, the reported number increased significantly from the year-ago profit of 7 cents per share.
Net sales of $610.9 million in the quarter surpassed the Zacks Consensus Estimate of $578 million by 5.7%. Also, net sales increased 21.1% year over year.
Adjusted EBITDA from continuing operations was $112 million in the quarter compared with $52 million in the prior-year quarter. This marks the highest adjusted EBITDA in the last four years.
Segmental Analysis
OSB: Sales at the OSB segment increased 23.7% year over year to $268.4 million.
In the first quarter, adjusted EBITDA was $75.3 million, up a significant 151% year over year.
Sales volumes remained flat year over year, while pricing increased 25%, driving solid operating results.
Siding Segment: The segment manufactures products under two categories — SmartSide siding products and related accessories, and CanExel siding and other related accessories. These products are used for new constructions, repair and remodeling and outdoor structures such as shed. The segment also produces a limited number of OSB products.
This segment’s sales were up 18% to $214 million on a 2% increase in SmartSide average sales prices and 16% rise in volumes.
In this quarter, the Siding segment recorded adjusted EBITDA of $48.5 million, 41% higher from the prior-year quarter.
Engineered Wood Products ("EWP"): The EWP segment makes I-Joists (IJ), laminated veneer lumber (LVL), laminated strand lumber (LSL) and other related products. These products are used in residential and commercial flooring and roofing systems.
Engineered Wood Products sales grew 14.3% year over year to $82.1 million in the quarter. Volumes of IJ increased 11% while that of LVL and LSL were up 2% from the prior-year quarter.
Pricing increased 2% for LVL and LSL and 1% for I-Joists. Adjusted EBITDA was $4.5 million, compared with $0.8 million in first-quarter 2016.
South America: This segment comprises facilities in Chile and Brazil. Segment sales increased 23.9% year over year to $37.8 million.
Volumes improved 23% in Chile for selling imported products and 1% in Brazil because of continued economic recession in the local market. However, on a U.S. dollar basis, pricing was up 4% in Chile and 11% in Brazil.
Adjusted EBITDA of $7.3 million reflected a marginal increase from $7 million in the first quarter of 2016.
Other: Net sales were $8.7 million in the quarter compared with $6.1 million a year ago.
2017 Outlook
The company expects to post solid second-quarter results given higher OSB pricing, continued siding growth, several new product launches and relatively flat raw-material pricing.
Capital expenditures are projected in the $175–$200 million range.
The company expects to start paying cash taxes in 2017. In the second quarter, the company anticipates tax payments just over $90 million. However, the company doesn't plan to pay cash taxes in Canada yet owing to the net operating losses.
Louisiana-Pacific Corporation Price, Consensus and EPS Surprise
Louisiana-Pacific Corporation Price, Consensus and EPS Surprise | Louisiana-Pacific Corporation Quote
Zacks Rank & Peer Releases
Louisiana-Pacific carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Masco Corporation’s (MAS - Free Report) adjusted earnings of 41 cents per share in the first quarter of 2017 surpassed the Zacks Consensus Estimate of 35 cents by 17.1%. Adjusted earnings increased 28.1% year over year.
D.R. Horton, Inc. (DHI - Free Report) exhibited an impressive performance in the second quarter of fiscal 2017, with both earnings and revenues beating the Zacks Consensus Estimate by 1.7% and 5.2%, respectively.
NVR, Inc. (NVR - Free Report) reported first-quarter 2017 earnings of $25.12 per share, surpassing the Zacks Consensus Estimate by 27.3%. The reported figure also increased 59% from the year-ago profit level.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>